Market analyst Rajat Bose says Nifty has support at 8,127 and if 8000 levels are breached, it could slide to 7,800 levels.
Traders would also be keeping a watch on the rupee in view of dollar hitting a nine-year high against the euro. The rupee was higher at 63.43 against Tuesday's close of 63.57.
At 11:42 am, the Sensex down 131 points to 26,855. The Nifty fell 35 points to move below 8100 levels. Sensex fell 854 points on Tuesday as a tumble in oil prices roiled global markets.
Strong selling pressure was seen in banking stocks which had outperformed last year. The banking index, Bank Nifty, was down 0.8 per cent. PNB and ICICI Bank fell between 2 per cent and 3 per cent.
Metals were also under pressure. Sesa Sterlite and Tata Steel were down over 2 per cent.
Select buying was seen in some oil & gas stocks after they suffered a big selloff yesterday. Market heavyweight RIL was up 1.2 per cent after slumping 4.5 per cent in the previous session. (With Agency Inputs)